This guide is in English for now. The tool itself works in your language.
Credit Note › Credit note format
GST credit note format: what it must show
A credit note is how a registered supplier reduces an invoice already issued. Under GST you do not tear up or edit the old invoice: you issue a numbered credit note that points to it.
When a GST credit note is issued
Section 34 of the CGST Act lets the supplier issue a credit note when, after a tax invoice:
- the taxable value or the tax charged on the invoice turns out to be more than it should be,
- the buyer returns goods, or
- goods or services supplied are found deficient (short, damaged, not as ordered).
Only the supplier issues a GST credit note. If a buyer sends you a "credit note" for goods returned to you, it is not a GST credit note; ask the supplier to issue one, or treat the buyer's document as a commercial note only.
What it must show
The GST rules list the details. A credit note should have:
- Your name, address and GSTIN.
- The words Credit Note, so it is clear what kind of document it is.
- A serial number, unique for the financial year, up to 16 characters (letters, numbers, - and /), for example CN/26-27/001.
- The date of issue.
- The recipient's name, address and GSTIN. If they are not registered, their name, address and the state name and code.
- The number and date of the original tax invoice (one note can cover more than one invoice; list them).
- The value of goods or services, the tax rate, and the amount of tax being credited.
- Signature of you or someone you authorise.
The maker prints all of these, plus the reason and the HSN tax summary.
A worked sample
An electrical shop in Jaipur sold 20 ceiling fans at ₹1,500 to a contractor in Jaipur on invoice INV/26-27/045, 12 Oct 2026: ₹30,000 + CGST 9% ₹2,700 + SGST 9% ₹2,700 = ₹35,400. Three fans came back with broken blades.
| Item | HSN | Qty | Rate | Value | CGST 9% | SGST 9% |
|---|---|---|---|---|---|---|
| Ceiling fan 1200 mm, returned | 8414 | 3 Nos | ₹1,500 | ₹4,500 | ₹405 | ₹405 |
Credit note CN/26-27/003, 6 Nov 2026, against INV/26-27/045 of 12 Oct 2026, reason "Goods returned". Total credit ₹5,310. The contractor now owes ₹30,090.
The HSN code and rate here are only an example; use the same ones as on your original invoice.
Common mistakes
- Editing or cancelling an invoice after it went into your GSTR-1, instead of issuing a credit note.
- Using the invoice number series for credit notes. Keep a separate series.
- Not quoting the original invoice, or quoting a different rate of tax from it.
- Crediting the whole invoice when only part was returned. Enter only the difference.
- Missing the time limit: see time limit for credit notes.